Here’s why Bitcoin losing $ 6,000 in hours was good for BTC price action

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Bitcoin (BTC) traded just below $ 65,000 on November 11 after an overnight correction canceled previous instantaneous gains.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView “No Free Meal” for Speculators

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD recovering after briefly dropping below $ 63,000 in new volatility.

The pair had risen sharply as US inflation hit its highest level in 30 years, which combined with reactions from the derivatives market to produce uncertain price action.

With $ 69,000 now the all-time high, some were apprehensive, while seasoned market participants took the opportunity to poke fun at weak hands.

“Why the 68k BTC withdrawal? There has been a massive increase in open interest in BTC margin futures this afternoon (traders opting for BTC with BTC as collateral), ”analyst Dylan LeClair explained alongside a chart. by Glassnode.

“No free lunch – these traders are being shaken up.” Annotated Bitcoin Futures Open Interest Chart. Source: Dylan LeClair / Twitter

Analyst William Clemente pointed out that Taproot’s next soft range is a clear reason to be bullish and rule out near-term price movements.

Taproot will bring a host of protocol improvements to Bitcoin, which bear no comparison with the changes since the introduction of Segregated Witness (SegWit) transaction technology.

We are days away from the first major Bitcoin (Taproot) upgrade since Segwit in 2017 and people are panicking.

– Will Clemente (@WClementeIII) November 10, 2021

Derivatives funding rates, on the other hand, served to prove that an upheaval had indeed taken place, returning solidly to neutral territory of 0.01% across the stock exchanges.

Ether Avoids Deeper Altcoin Retracement

In classic style, altcoins felt the heat when Bitcoin reversed, wiping out what were previously returns that had outperformed BTC / USD.

Related: “#DropGold Worked” – World’s Largest Gold Fund “Flippens” in Grayscale As AUM Reaches $ 60 Billion

Ether (ETH) was the most unscathed of the day, down 0.6% and still close to all-time highs.

1 hour ETH / USD candle chart (Bitstamp). Source: TradingView

Others did slightly less well, with daily losses of 4% among the top 10 cryptocurrencies by market cap.

“Crucial right now: Bitcoin,” Cointelegraph contributor Michaël van de Poppe concluded in his latest YouTube update.

“Where are we going to drill? If we cross that area around $ 67,000, I think we will continue the bullish cycle and we are poised to hit new all time highs. ”

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